Ministers to consider scrapping EU laws letting banks shut accounts

Ministers to consider scrapping EU laws accused of letting banks shut accounts over customers’ political beliefs

• Treasury officials have now ordered the City watchdog for a review of the rules
• Currently, public figures are subjected to ‘enhanced checks’ under the EU rules 

EU laws that allow banks to shut down the accounts over political views are expected to be scrapped by ministers under new plans.  

This comes as Nigel Farage revealed that his bank account had been shut down, without warning, out of an alleged ‘serious political persecution’. 

Treasury officials have now ordered the City watchdog for a review of the rules for ‘politically exposed persons’ (PEPs), which were passed into UK law under a Brussels regulation. 

The rules stipulate that financial institutions must carry out ‘enhanced’ checks on people in the public eye. 

In a worrying threat to free-speech, Mr Farage claimed that he was denied accounts with nine banks, making him a victim of ‘corporate prejudice’ in a backlash against his Brexit campaign. 

Mr Farage claimed that he was denied accounts with nine banks, making him a victim of ‘corporate prejudice’

Mr Farage has since urged to the government to take full advantage of Brexit and scrap the EU rules to bring an end to the ‘injustice’ faced by public figures. 

Chancellor Jeremy Hunt and Business Secretary Kemi Badenoch are both believed to be behind the call to amend EU regulations. 

Under the rules, PEPs  – which include politicians and even members of the royal family – are subjected to scrutiny of their financial affairs as well as those of their family. 

The ‘enhanced checks’ were introduced to tackle money laundering, blackmail and corruption. 

Mr Farage told The Telegraph: ‘What is happening to me and so many others is a direct result of EU laws that have been incorporated into the UK rulebook.’ 

He went on to say: ‘Add to that Britain’s obsession with gold-plating EU regulation and that is how this injustice has been allowed to come about.

‘If only our Government had pursued the Brexit freedoms available. It still could and should do the right thing here and repeal this law.’

Andrew Griffith, the Economic Secretary to the Treasury, wrote to the Financial Conduct Authority asking it to expedite the review of the rules.

The EU regulations, which go above international obligations, removed any distinction between domestic foreign public figures, and were passed into UK law 

He wrote: ‘Given the strength of concern on this issue, I would expect that the FCA will prioritise this important review over the coming months, and if there are ‘easy wins’ along the way will implement those expeditiously.’

Tory peer Lord Moylan claimed that leaving the EU meant that ‘we could revert to the proper international standards by introducing a distinction between domestic and foreign PEPs’. 

He added: But we’ve got resistance from our own civil servants and ministers are going along with it.’

Sir Charles Walker, a senior Tory MP who has campaigned on the issue, urged the government to utilise existing powers to sanction banks that are failing to protect their customers. 

He added: ‘The banks can behave as they are because they have access to a virtually bottomless pit of money to defend themselves against any claim brought by a de-banked customer.’

Claire Coutinho, children’s minister, said it was ‘completely unacceptable for a bank to close an account because they don’t like the opinions of the individuals’.

The EU regulations, which go above international obligations, removed any distinction between domestic foreign public figures, and were passed into UK law through the EU’s push for anti-money laundering.   

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